The race for takeovers abroad is getting hotter. After Tata Tea’s buyout of American energy drink giant Glaceau for $677 million, it’s the turn of Videocon group to make Corporate India’s biggest overseas acquisition ever.

On Friday, Videocon Industries was picked as the preferred bidder to take over South Korean appliances firm Daewoo Electronics for a reported price of around $700 million (around Rs 3,220 crore).

‘‘Following Prime Minister Manmohan Singh’s call that Indian companies should now go global, domestic companies are now competing in an equal footing abroad and Videocon is also marching forward to become a global brand and is striving to become world’s one of the largest consumer durables company,’’ Videocon chairman Venugopal Dhoot said on Friday.

Woori Bank, one of Daewoo’s leading creditors, on Friday named Videocon and RHJ International, the holding company of US buyout fund Ripplewood, as the primary bidder. South Korean private equity fund MBK Partners was a reserve bidder.

Woori Bank officials in Korea declined to reveal the bid price, but a local newspaper said the Videocon consortium offered $700 million-$711 million.

If successful, the deal would mark Videocon’s third major acquisition in less than two years after it took over French firm Thomson and Swedish firm Electrolux for Rs 1,260 crore and Rs 410 crore respectively.

Videocon Industries, which also has a healthy turnover from its oil exploration business, is also scouting for oil fields abroad for takeover.

Daewoo was put up for sale by its Korean creditors, who own 97.5 per cent of the unlisted firm. They aim to sign a preliminary deal with the Videocon consortium in September and the management change would take place by this year-end.

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